Question 1

How is income tax (ISR) calculated in El Salvador?

Accepted Answer

ISR is calculated on annual taxable income (gross salary minus AFP and ISSS) using progressive brackets: 0% up to $4,064, 10% up to $9,142.86, 20% up to $22,857.14, and 30% on the excess.

Question 2

How much is the AFP deduction in El Salvador?

Accepted Answer

The employee AFP (pension) contribution is 7.25% of gross monthly salary.

Question 3

How much is the ISSS deduction in El Salvador?

Accepted Answer

The employee contributes 3% of salary to ISSS (social security), capped at a salary base of $1,000/month, meaning a maximum of $30/month.

Question 4

What are the ISR tax brackets in El Salvador?

Accepted Answer

There are 4 annual brackets: exempt up to $4,064, 10% from $4,064.01 to $9,142.86, 20% from $9,142.87 to $22,857.14, and 30% above $22,857.14.

Question 5

Is ISR calculated monthly or annually?

Accepted Answer

ISR is calculated on annual income, but withheld monthly by dividing the annual tax by 12 months.

El Salvador Income Tax (ISR) Calculator